FinTech firm Pagaya unlocks $1bn for point-of-sale lending through POSH securitisation
Pagaya Technologies, a global FinTech company known for its AI-powered financial solutions, has introduced an innovative securitisation programme with the aim of boosting growth in the point-of-sale (POS) lending sector.
The firm has secured additional funding capacity exceeding $1 billion through the establishment of Pagaya Point of Sale Holdings Trust (POSH), a revolving asset-backed securitisation vehicle. The initial transaction, named POSH 2025-1, is a $300 million AAA-rated deal expected to conclude soon, featuring participation from over 20 investors, a mix of new and returning participants.
With the use of machine learning and an extensive data network, Pagaya delivers consumer credit and residential real estate solutions. Its platform interfaces through API integration with partners’ origination systems, allowing for flawless customer experiences and wider access to credit products.
The newly acquired funds from POSH empower Pagaya to widen its POS lending capacity. This is made possible by enabling reinvestment as loans are paid back, thereby enhancing capital efficiency. The POS offering targets shorter-term loans, typically around six months, focusing on borrowers with credit scores above 600. This approach promotes higher approval rates without compromising credit risk, making it a lucrative option for both lenders and merchants.
Co-founder and President of Pagaya, Sanjiv Das, expressed, “The launch of POSH marks the beginning of a new phase of growth for us in the point-of-sale sector. It allows Pagaya to back our existing POS lending partners significantly by facilitating more customer approvals, which, in turn, enhances merchant satisfaction and activation. These outcomes are achieved seamlessly through our API integration into our partners’ origination systems, simplifying the process of unlocking value for both lenders and merchants. This represents a powerful instance of merging innovative technology and structured finance to meet real market demands in one of the most dynamic and rapidly expanding segments of consumer credit.”
Gal Krubiner, co-founder and CEO of Pagaya, added, “We are thrilled to introduce POSH and incorporate Pagaya’s leading securitisation expertise into the swiftly expanding point-of-sale market, which we anticipate will account for a significant portion of our future business. Throughout all market cycles, we aim to scale and diversify our lending products and long-term investment offerings, while also innovating with new structures to boost growth in emerging markets like POS. As the foremost personal loan ABS issuer in the U.S., Pagaya aspires to also become the leading issuer of POS ABS, solidifying our status as a frontrunner in structured finance.”
The launch of Pagaya’s POSH represents a strategic expansion in the financial sector’s ecosystem, addressing the evolving needs of both consumers and merchants. By incorporating AI and machine learning into their methodology, Pagaya is poised to redefine the POS landscape, ensuring sustainable growth and an enhanced user experience.
